Fair Value Accounting and Measurement (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value Inputs, Assets, Quantitative Information

The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis at March 31, 2020 and December 31, 2019 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

	Fair Value		Fair Value Measurements at Reporting Date Using
			Level 1		Level 2		Level 3
March 31, 2020	(in thousands)
Assets
Debt securities available for sale:
U.S. government agency and government-sponsored enterprise mortgage-back securities and collateralized mortgage obligations	$	2,766,137	$	—	$	2,766,137	$	—
Other asset-backed securities	203,512		—		203,512		—
State and municipal securities	448,060		—		448,060		—
U.S. government agency and government-sponsored enterprise securities	135,419		—		135,419		—
Total debt securities available for sale	$	3,553,128	$	—	$	3,553,128	$	—
Other assets:
Interest rate contracts	$	49,775	$	—	$	49,775	$	—
Interest rate collar	$	37,209	$	—	$	37,209	$	—
Liabilities
Other liabilities:
Interest rate contracts	$	49,777	$	—	$	49,777	$	—

	Fair Value		Fair Value Measurements at Reporting Date Using
			Level 1		Level 2		Level 3
December 31, 2019	(in thousands)
Assets
Debt securities available for sale:
U.S. government agency and government-sponsored enterprise mortgage-back securities and collateralized mortgage obligations	$	2,892,950	$	—	$	2,892,950	$	—
Other asset-backed securities	196,050		—		196,050		—
State and municipal securities	488,802		—		488,802		—
U.S. government agency and government-sponsored enterprise securities	168,340		—		168,340		—
Total debt securities available for sale	$	3,746,142	$	—	$	3,746,142	$	—
Other assets:
Interest rate contracts	$	19,144	$	—	$	19,144	$	—
Interest rate collar	$	14,727	$	—	$	14,727	$	—
Liabilities
Other liabilities:
Interest rate contracts	$	19,145	$	—	$	19,145	$	—

Financial Assets Accounted For Fair Value On Nonrecurring Basis

The following tables set forth information related to the Company’s assets that were measured using fair value estimates on a nonrecurring basis during the current and prior year quarterly periods:

	Fair Value at March 31, 2020		Fair Value Measurements at Reporting Date Using						Losses During the Three Months Ended March 31, 2020
			Level 1		Level 2		Level 3
	(in thousands)
Collateral dependent loans	$	3,043	$	—	$	—	$	3,043	$	5,138
	$	3,043	$	—	$	—	$	3,043	$	5,138

	Fair Value at March 31, 2019		Fair Value Measurements at Reporting Date Using						Losses During the Three Months Ended March 31, 2019
			Level 1		Level 2		Level 3
	(in thousands)
Collateral dependent loans	$	3,840	$	—	$	—	$	3,840	$	2,597
OREO	530		—		—		530		195
	$	4,370	$	—	$	—	$	4,370	$	2,792

Fair Value, by Balance Sheet Grouping

The following tables summarize carrying amounts and estimated fair values of selected financial instruments by level within the fair value hierarchy at March 31, 2020 and December 31, 2019:

	March 31, 2020
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
	(in thousands)
Assets
Cash and due from banks	$	190,399	$	190,399	$	190,399	$	—	$	—
Interest-earning deposits with banks	25,357		25,357		25,357		—		—
Debt securities available for sale	3,553,128		3,553,128		—		3,553,128		—
FHLB stock	38,280		38,280		—		38,280		—
Loans held for sale	9,701		9,701		—		9,701		—
Loans	8,811,247		8,998,063		—		—		8,998,063
Interest rate contracts	49,775		49,775		—		49,775		—
Interest rate collar	37,209		37,209		—		37,209		—
Liabilities
Time deposits	$	353,536	$	353,578	$	—	$	353,578	$	—
FHLB advances and FRB borrowings	712,455		714,022		—		714,022		—
Repurchase agreements	29,252		29,252		—		29,252		—
Subordinated debentures	35,231		35,309		—		35,309		—
Revolving line of credit	5,000		5,005		—		5,005		—
Interest rate contracts	49,777		49,777		—		49,777		—

	December 31, 2019
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
	(in thousands)
Assets
Cash and due from banks	$	223,541	$	223,541	$	223,541	$	—	$	—
Interest-earning deposits with banks	24,132		24,132		24,132		—		—
Debt securities available for sale	3,746,142		3,746,142		—		3,746,142		—
FHLB stock	48,120		48,120		—		48,120		—
Loans held for sale	17,718		17,718		—		17,718		—
Loans	8,659,497		8,883,865		—		—		8,883,865
Interest rate contracts	19,144		19,144		—		19,144		—
Interest rate collar	14,727		14,727		—		14,727		—
Liabilities
Time deposits	$	400,070	$	397,736	$	—	$	397,736	$	—
FHLB advances	953,469		952,762		—		952,762		—
Repurchase agreements	64,437		64,437		—		64,437		—
Subordinated debentures	35,277		35,491		—		35,491		—
Interest rate contracts	19,145		19,145		—		19,145		—

Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value Inputs, Assets, Quantitative Information

The range and weighted average of the significant unobservable inputs used to fair value our Level 3 nonrecurring assets, along with the valuation techniques used, are shown in the following table:

	Fair Value at March 31, 2020		Valuation Technique	Unobservable Input	Range (Weighted Average) (1)
	(dollars in thousands)
Collateral dependent loans (2)	$	3,043	Fair Market Value of Collateral	Adjustment to Stated Value	0.00% - 100.00% (59.78%)

__________

(1) Discount applied to appraised value or stated value (in the case of accounts receivable, fixed assets and inventory).

(2) Collateral consists of accounts receivable, fixed assets, inventory and real estate.

	Fair Value at March 31, 2019		Valuation Technique	Unobservable Input	Range (Weighted Average) (1)
	(dollars in thousands)
Collateral dependent loans (3)	$	3,840	Fair Market Value of Collateral	Adjustment to Stated Value	0.00% - 100.00% (44.53%)
OREO	$	530	Fair Market Value of Collateral	Adjustment to Appraisal Value	N/A (2)

__________

(1) Discount applied to appraisal value or stated value (in the case of accounts receivable, fixed assets, and inventory).

(2) Quantitative disclosures are not provided for OREO because there were no adjustments made to the appraisal values during the current period.

(3) Collateral consists of accounts receivable, fixed assets, inventory, real estate and state guarantee.